A cash flow loan from Boost Capital helped this small cleaning contractor pick up a big new client, almost doubling their business.
Stuart Massey is the owner and operator of SM Cleaning Ltd., a small cleaning firm specializing in holiday parks, exit and entry cleanings for estate agents, and post-construction cleaning for building companies. The majority of their business comes from holiday parks: they currently have two major contracts in Cornwall, one at Saint Ives and one at Mullion, where they do daily cleaning from April through November and deep cleaning in the winter months.
Before going into business by himself, Stuart had spent his career in general management roles. But after being made redundant twice in the span of only six months, he decided to start his own business .
“After that I thought, you know what? I’m never going to work for anybody else again,” he says. “So I took some of that redundancy money and set up the business – and was very lucky to quickly obtain our first holiday contract, worth about £250k a year.”
Stuart faces a pretty significant challenge, however. Holiday parks pay their cleaners after 90 days. For a company that needs to pay employees biweekly, that’s a problem. Stuart was paying out his staff at least three or four times before seeing any revenue, and that was hard to manage in terms of cash flow. With that initial contract, he did manage to find a solution: when banks said no, his brother came through with short-term funds. However, entrepreneur that he is, Stuart wasn’t satisfied with that single holiday park contract. He wanted to grow his business, and borrowing money from family wasn’t a long-term solution – he needed a bigger and better option.
“Every time I tried to win a new piece of business, I was thwarted by those 90-day terms,” he says. “It was hard to get what we needed across to the banks. Because I wasn’t necessarily looking to invest in machinery or equipment, and just needed a loan for cash flow, they didn’t want to deal with me. It was frustrating, but then Boost Capital came along and just lifted the lid up for me.”
Connecting with Boost Capital happened at just the right time: MS Cleaning had an opportunity to land a second holiday park contract. But they needed a chunk of cash to pay additional employees, purchase a new van, and get a new carpet cleaning machine to service the new contract. The Boost Capital loan allowed them to do all of those things, and Stuart was able to successfully expand his business despite the challenging payment terms.
Today, SM Cleaning is on their third Boost Capital loan. Not only have they added more clients to their growing roster, they’ve bought more vans to make their expanding workforce more mobile, and purchased a state-of-the-art carpet cleaning machine to get an edge over their competitors.
“If we hadn’t got a loan, we wouldn’t have been able to chase the business,” says Stuart. “But thanks to the much-needed cash, we got a second holiday park contract and I’ve increased my staff by 30 people. Having substantial capital behind me ensures we can pay wages before we get paid.”
Over the last two years, Stuart’s business has increased by well over £170k thanks to the funding that allowed him take those next steps. And he isn’t stopping there. He has big plans for the future, and using Boost Capital loans for cash flow is a vital part of his plan. Right now, he’s looking at new premises, staff and equipment – and some marketing to enable them to go after even more business.
“Running your own business is about always having that fire in you to move forward and keep getting bigger and better,” he says. “Boost Capital is a great fit for businesses looking to expand – it’s so good to know you’ve got that kind of support behind you.”
Need business funding? Apply today and your business could have the money it needs in as little as two business days.